US CPI Inflation & PPI Data In Focus; Will It Impact BTC & Altcoins Rally?

The financial market has gone through a topsy-turvy scenario lately, with soaring macroeconomic concerns weighing on the investors’ sentiment. Notably, recent economic indicators like the US Job data and Fed officials’ hawkish remarks have fueled concerns among traders. Having said that, investors now eagerly await the US CPI inflation and PPI data, which is scheduled to be released later this week. Besides, it also fueled speculations about how these indicators might impact the BTC and altcoins’ performance ahead.

Crypto Market Awaits US CPI Inflation Data

The crypto market eagerly awaits the US CPI inflation data now, scheduled for Wednesday, January 15, for cues on the current economic health. Notably, recent indicators like the robust US Job data have fueled investors’ concern recently.

According to the latest Labor Department data, the US has added 256,000 jobs in December, exceeding the market forecast of 160,000. Besides, the unemployment rate also plunged to 4.1% from 4.2% in the prior month.

This robust US Job market data further cemented bets over a potential hawkish move by the Federal Reserve ahead. Notably, it appears that the central might stick to its tightened monetary policy and the market may have to wait till June for the first Fed rate cut this year.

What To Expect From US CPI?

The US CPI inflation is one of the key focuses of the financial market this week, let alone the crypto space. According to market estimates, the Consumer Price Index is expected to remain unchanged at 0.3%, while the YoY CPI is likely to come in at 2.9%, up from the previous month’s figure of 2.7%.

On the other hand, the Core CPI, which excludes food and energy prices, is expected to cool at 0.2% from the 0.3% figure noted last month. Simultaneously, the Core CPI on a year-over-year basis is expected to remain unchanged at 3.3%.

This indicates that the market is already bracing for hot inflation data this week. However, if the data comes in more than the expectations, it could further dampen the investors’ sentiment and potentially impact BTC and altcoins’ performances. In other words, the hotter-than-anticipated figures might give more space to the investors to move with their hawkish plans ahead.

US PPI Inflation Also In Cards

Apart from the US CPI inflation data, the market watchers also eagerly await the upcoming US PPI data. The Producer Price Index (PPI) data is scheduled for Tuesday, January 14. It is another key metric considered by the Fed to gauge the inflationary pressure in the market.

If this data also comes in hotter-than-expected, the central bank might move ahead with the higher interest to tackle the inflation. Besides, it could significantly impact the traders’ sentiment and weigh on the crypto market’s performance.

What’s Next For BTC & Altcoins?

Bitcoin and the top altcoins have recorded volatile trading, especially after Fed Chair Jerome Powell indicated only two rate cuts through 2025 last month. Previously, the market was betting over four rate cuts this year.

In addition, the recent remarks from the Fed officials have further dampened the market sentiment. Notably, the officials said that the central bank would closely monitor the economic data and other factors before deciding on lowering the interest rates. Having said that, the upcoming US CPI inflation and PPI data will be closely watched by the market participants.

Having said that, the broader crypto market may face volatile trading in the coming days, if the US Federal Reserve decides to move ahead with a hawkish plan. However, despite the short-term concerns, several market watchers remained confident about the long-term trajectory of the digital assets space.